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Feb 24 2007 11:42AM
Guar futures recover from overnight slump
Mumbai, Feb 24 All guar futures on NCDEX were seen recovering from the overnight falls during the opening session Saturday. Traders, however,warrant thatconcerns related toan 'imminent' ban on derivatives trading in farm commodities may pressurise market sentiments in short-term. Earlier, guar trade at domestic exchanges and physical trade centres across the country carried a scary look Friday as doubts over continuance of forwards trade in the commodity re-emerged. The manner in which the Prime Minister has responded to the opposition [over role offorwards trade in leading to price rise] ofpolitical parties, led from the front by the Left, is seen to haverun down deep in the psyche of the market.Finance Minister P Chidambaram made it categorically clear couple of days back that any decision on the issue will rest on recommendations from the Ministry of Agriculture after it scans the FMC report, but the traders remained clouded withdoubtsthat 'something' wascoming and for that matter coming in a quick time. The worries have been translated into intensive selling across spot markets, dragging the physical prices sharply lower, a trader reacted.Left and other political outfits havebeen raising the issue oflatewith little effect on the market sentiments, traders say. Itis the letter issued fromthePMO Thursday to state chief minister that has pressed thealarm bell. The market has taken a serious note over the language of the letter. They appear to be closing in on a decision...that does not look going the way the market expects, a local trader in Jodhpur said. The concerned group of traders were seen tostep-in to sell out their stocks in last trade. A number of traders weresquaring off their position on futures counters against their demat account to ensure that the losses, when they come,were controlled, another trader in Jodhpur said.As selling intensified, the supplies had got limited yesterday to only 10-12 thousand bags at benchmark market Jodhpur. Other markets also witnessed a similar situation. The sellers are filling in the vacuum created by the nervous buyersanxiously stepping back on concerns that futures trading may get banned soon, says Mahesh Batra, a guar merchant in Sriganganagar.In early trade Saturday, guar seed April contract gained Rs. sixto trade at Rs. 1,922 per quintal. The traded volume, so far, was at 24,200 tonnes.Same month guar gum contract traded 265 tonnes and moved up by Rs. ten toquote atRs. 4,729 per quintal.Guar futures on NCDEX tradedasfollows[in Rs/ql]:Guar Seed:| Contract | Last | High | Low | Previous close | Change | | March 07 | 1882 | 1888 | 1875 | 1876 | +6 | |
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